Strengths: Amy’s entrepreneurial spirit ; Toy Kim Dupree-excellent right-hand director ; Already has approximately 50 sweeping clients. plus 30 on a waiting list ; Company is eventually turning a net income ; Positive work environment ( 5 twenty-four hours work hebdomad. better wage than competition.
benefits bundle. 401 ( K ) program. employees allowed to talk freely. low turnover ) ; Retail concern allows for higher net income borders.
and now represents 25 % of Amy’s concern ; Good niche merchandise mix-high quality staff of life merchandises. micro-bakeries ; Makes herself available to the press/public. leads to word of oral cavity advertisement ; Can now procure bank financing due to Amy’s proven track record ; Wholesale concern ( stand foring 75 % of the concern ) is more stable than retail concern.
Opportunities: Much higher net income borders in high-end staff of lifes ( black olive. apple walnut rasin- $ 2. 40 sweeping. $ 3. 40 retail net income with the high-end staff of lifes vs. $ 1. 71 sweeping.
$ 2. 60 retail without high-end staff of lifes ) ; Retail concern ( presently 25 % of concern ) allows for higher net income borders and payment is merely in hard currency ; Hiring another director could let Amy more clip to run the company ; Buying 31st street location would let for production installation enlargement and the ability to provide to clients presently on the waiting list ; Renting the 15th street location could let both retail and production enlargement.Failings: Bakery industry is extremely competitory with low sweeping net income borders ; NYC locations are really expensive ; Higher labour costs due to hand-production techniques ( 35 % of CGS ) ; Ingredient monetary values are volatile ; Ingredients are more expensive than the competition’s ; CGS is 65 % of net gross revenues ; Rivals can bask better economic systems of graduated table due to machine-controlled production and cheaper ingredients ; 75 % of the concern is through lower-profit jobbers ; Current production location is excessively little to run into turning demand.Menaces: Dieting tendencies ( i.
e. Atkins diet ) could impact consumer demand for staff of life.Mission: To bring forth high-quality. handmade staff of lifes for sweeping and retail clients through our retail locations and door-to-door bringings.Aim: Amy’s Bread has seen steady growing over the last few old ages.
This success has overextended both the employees and the warehouse infinite. Amy is looking to travel operations to one of two locations: a edifice on 31st street. or one on 15th street.
The 31st street location would let Amy to spread out her sweeping concern and let her to put in a belongings alternatively of renting. Amy should besides look into adding a director to let her the clip to concentrate on the overall concern. Her most profitable staff of life lines are the costly staff of lifes. she should look into increasing the figure of costly staff of life. Finally. Amy should see opening little retail locations in New York City.